BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1918
                                                                  Page  1

          Date of Hearing:   May 14, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                  AB 1918 (Williams) - As Amended:  April 24, 2014 

          Policy Committee:                              Utilities and  
          Commerce     Vote:                            10-3

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill requires the Public Utilities Commission (PUC) to  
          establish an incentive program for contractors and local  
          governments to improve the process of verifying newly installed  
          heating and air cooling (HVAC) systems comply with building code  
          requirements.   The incentives may include the following:

          a)Funding for training for HVAC installers, local government  
            building officials, contractors, builders and school building  
            inspectors.

          b)Technical and financial support to establish compliance  
            verification protocols.

          c)Financial or other support for local agencies to improve  
            permitting. 

          This bill also requires the Energy Commission (CEC) in  
          consultation with the Contractors' State License Board (CSLB),  
          to identify and implement methods to simplify compliance with  
          state efficiency standards.   

           FISCAL EFFECT  

          Minor, absorbable costs.
             
           COMMENTS  

           1)Purpose.   According to the author, California's standards for  
            building efficiency are recognized as leading the nation in  
            energy savings. However, the effectiveness of the standards is  








                                                                  AB 1918
                                                                  Page  2

            dependent on compliance. Compliance violations not only  
            threaten energy savings, they also result in a substantial  
            financial loss to consumers.

            This bill will help ensure reported energy savings are real,  
            consumers who purchase services for home improvement are  
            protected, and businesses that provide energy efficiency  
            services are operating on a level playing field.

           2)Background.     According to the CEC, only 10% of replacement  
            HVAC systems meet manufacturer's quality control  
            specifications for air flow, refrigerant charge, and the CEC's  
            duct sealing requirements.  During new construction, only 30%  
            of HVAC installations meet these requirements.  The lack of  
            quality control for installations may result from unpermitted  
            installation and the difficulty in tracking new installations  
            and performing post-installation compliance inspections. When  
            post-installation compliance inspections cannot be completed,  
            inefficient energy systems may continue wasting energy and  
            money.

            .
           Analysis Prepared by  :    Jennifer Galehouse / APPR. / (916)  
          319-2081